Keanu Yager - Lesson 4.1 Hidden Costs of Credit.pdf - NAME:...

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NAME:DATE:HiddenCostsofCredit(1/3)DirectionsThefollowingtermsarefoundoncreditcarddisclosureform.Workwithapartnertolocateinformationonthesampledisclosurestatement.»AnnualFee:Thefeeacreditcardcompanychargesfortheuseoftheir»CreditLimit:Themaximumamountofmoneythelenderiswillingtoloan»FinanceCharge:Thetotalcost ofusingcreditincludinginterest»OriginationFee:Thechargeforsettingupaloan(oftenassociatedwith»LoanTerm:Thelengthoftimeyouhavetopaytheloan.Remember,thelongertheloan,monthlypayment,thegreatertheinterest»GracePeriod:Thelengthoftimethatthelenderchargesnointerestonmoneyborrowedyourbalanceinfulleach»AnnualPercentageRate:Thecostoftheloaneachyearexpressedasapercentage.requiredbylawtocalculateAPRthesame»IntroductoryRate:Lowerinterestrateofferedbycreditcardcompanies,usuallyforashortperiodenticeyoutosignupforcreditwiththem.Eventually,therateexpiresandanew"increased"rateQuestionsUsetheSampleDisclosureFormtoanswerquestionsOExplainwhenthiscreditcardcompanycanadjustOWhatisthespecialintroductoryratefortheAPR.OHowmuchwillitcost,infees,totransferabalancetothiscard?thefollowingcreditcardanapplicantandfeeshomeloans)theloweryourpaid.whenpayingoffmonthAlllenders areway.oftime,totakeseffect.1-7.thiscard?$1,000

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Term
Fall
Professor
Mrs. Hiss
Tags
Interest, Credit card, Personal Finance High School

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